Tax time. The two little words that strike fear into the hearts of even the most financially savvy.
But fear not. By avoiding common mistakes, you can dodge the ATO’s scrutiny and maximise your hard-earned return.
COMMON MISTAKES
Not keeping receipts: She’ll be right, they say. But when it comes to tax deductions, that’s a recipe for disaster. Receipts are your golden ticket to claiming work-related expenses, charitable donations, and other deductions. Keep those bits of paper safe.
Forgetting to declare all income: Whether it’s a side hustle gone wild or a granny flat rental, all income needs to be declared. Missing income can land you in hot water with the ATO, so be honest and upfront.
Claiming without proof: Just because you think that fancy new home office chair is a work expense, doesn’t mean the ATO agrees. Ensure you have receipts and meet the ATO’s criteria before claiming deductions.
Lodging too early: While you might be eager to get your refund, lodging before you have all your paperwork in order can lead to delays and amendments. Wait until you have received all your income statements (group certificates) before hitting submit.
Relying solely on pre-filled data: The ATO’s pre-filled info is a great starting point, but it’s not infallible. Double-check all details, especially if you’ve changed jobs or had other income sources during the year.
Not claiming work-related expenses: From phone bills to travel costs, many work-related expenses can be claimed. Familiarise yourself with what you can deduct to maximise your return.
Forgetting offsets: Offsets can significantly reduce your tax bill. Don’t miss out on benefits like private health insurance rebates or superannuation offsets.
Making maths mistakes: Nobody likes a maths whizz, but a simple calculation error can mean a smaller refund or even a tax bill. Double-check your numbers before submitting your return.
Going it alone when unsure: If the tax jargon makes your head spin, there’s no shame in seeking help. A registered tax agent can provide tailored advice and ensure you’re on the right track.
